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KSBA working with second group of school districts on intervention with utility rate hike proposal before PSC

KSBA is spearheading a second coalition of school districts that have intervened in a utility rate case pending before the state Public Service Commission.

In early January, KSBA was granted permission to become a formal party to a proposed rate increase for natural gas and electricity service by Louisville Gas & Electric and Kentucky Utilities.

Later last month, KSBA also was granted permission to intervene in a pending $70 million rate increase request by Kentucky Power Company.

The Kentucky Power rate case could affect 23 districts in the eastern third of the state. On Dec. 23, Kentucky Power requested PSC approval for new rates which, if granted, would result in an average increase of over 13 percent for public schools. Over half of the proposed increase is to recover costs associated with the acquisition of half of the Mitchell Plant in West Virginia and costs from retiring the Big Sandy Unit 2 in Louisa.

To date, more than half of the districts affected by the Kentucky Power case have affirmed their intention to take part in the KSBA-led intervention.

At last count, a total of 75 of 84 affected districts have committed funds to support the LG&E/KU rate case intervention.

Three previous KSBA-led utility rate interventions have saved Kentucky districts more than $5 million in energy bills and provided support of $1.5 million for energy managers working in the LG&E/KU-served districts.